📊 CGNX Key Takeaways
Investment Thesis
Cognex demonstrates solid fundamental strength with robust profitability (66.9% gross margin, 11.5% net margin) and healthy year-over-year growth (8.7% revenue, 9.7% EPS growth). The company maintains an exceptionally strong balance sheet with zero long-term debt, substantial free cash flow generation ($236.8M, 23.8% FCF margin), and excellent liquidity (3.80x current ratio), positioning it well for strategic investments and shareholder returns.
CGNX Strengths
- Exceptional gross margin of 66.9% indicates pricing power and operational efficiency in manufacturing/detection technology
- Strong free cash flow generation of $236.8M (23.8% of revenue) exceeds capex needs by 27x, providing financial flexibility
- Zero long-term debt with $262.9M cash position and 3.80x current ratio reflects fortress-like balance sheet
- Consistent profitability with 11.5% net margin and positive YoY growth across revenue (8.7%) and EPS (9.7%)
- Significant insider activity (30 Form 4 filings in 90 days) may indicate management confidence
CGNX Risks
- Modest return on equity (7.7%) and return on assets (5.7%) suggest capital is not being deployed at optimal efficiency despite strong cash generation
- Operating margin of 16.3% is reasonable but leaves room for operational leverage improvement
- Revenue growth of 8.7% is moderate, raising questions about market penetration and competitive positioning in industrial automation sector
- Data freshness date of 2025-12-31 appears inconsistent with analysis date; recommend verification of current reporting period
Key Metrics to Watch
- Operating margin expansion relative to revenue growth to assess operational leverage
- Return on equity trend to confirm efficient capital deployment of strong free cash flow
- Year-over-year revenue growth sustainability in industrial automation and vision systems markets
- Capital allocation strategy (dividends, buybacks, acquisitions) to maximize shareholder value
CGNX Financial Metrics
💡 AI Analyst Insight
The 23.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.80x current ratio provides a solid financial cushion.
CGNX Profitability Ratios
CGNX vs Industrial Sector
How COGNEX CORP compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CGNX Balance Sheet & Liquidity
CGNX 5-Year Financial Trend
5-Year Trend Summary: COGNEX CORP's revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $0.65 reflects profitable operations.
CGNX Growth Metrics (YoY)
CGNX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $234.7M | $17.7M | $0.10 |
| Q2 2025 | $239.3M | $36.2M | $0.21 |
| Q1 2025 | $210.8M | $12.0M | $0.07 |
| Q3 2024 | $197.2M | $18.9M | $0.11 |
| Q2 2024 | $239.3M | $36.2M | $0.21 |
| Q1 2024 | $201.1M | $12.0M | $0.07 |
| Q3 2023 | $197.2M | $18.9M | $0.11 |
| Q2 2023 | $242.5M | $57.5M | $0.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CGNX Capital Allocation
CGNX SEC Filings
Access official SEC EDGAR filings for COGNEX CORP (CIK: 0000851205)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CGNX
What is the AI rating for CGNX?
COGNEX CORP (CGNX) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CGNX's key strengths?
Exceptional gross margin of 66.9% indicates pricing power and operational efficiency in manufacturing/detection technology. Strong free cash flow generation of $236.8M (23.8% of revenue) exceeds capex needs by 27x, providing financial flexibility.
What are the risks of investing in CGNX?
Modest return on equity (7.7%) and return on assets (5.7%) suggest capital is not being deployed at optimal efficiency despite strong cash generation. Operating margin of 16.3% is reasonable but leaves room for operational leverage improvement.
What is CGNX's revenue and growth?
COGNEX CORP reported revenue of $994.4M.
Does CGNX pay dividends?
COGNEX CORP pays dividends, with $54.6M distributed to shareholders in the trailing twelve months.
Where can I find CGNX SEC filings?
Official SEC filings for COGNEX CORP (CIK: 0000851205) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CGNX's EPS?
COGNEX CORP has a diluted EPS of $0.68.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.